Archive for the ‘Internet’ Category

Note: I’m starting with games but this post is for all software developers.

In Gaming Software Development

Many computer games these days have online communities associated with them.  These most often take the form of forums with players exchanging advice, secrets, data, and braggadocio.  They also serve as a central communication point both from the game developer to the consumers as well as between the consumers.  Such communities can be seen as a hub-and-spoke model since a handful of the sites become the central connector for myriad smaller and more specialized sites.

Some communities are more actively fostered than others.  A software developer does not create the community separately from the software itself; it is on this step that many developers fail.  The software needs to be designed in such a way to generate a community.  For an example, I turn to  Lionhead Studios which developed Black & White and a sequel.

The original Black & White was widely hailed and developed a strong user community.  The developers allowed the game to use third-party content such as unofficial patches, additional maps, etc.  This significantly extended the life of the game which may have been a deciding factor for Lionhead not to include such support in the sequel.

Black & White 2 has been criticized since gameplay is limited to a single campaign and there is no way for players to add further content.  Once you have finished the official sequence of seven games, you must begin again.  This reduced the replay value for most consumers.

Economically speaking, there are circumstances in which this may be beneficial to the software developer.  If they had a similar game in the pipeline, consumers may have been left wanting more and may have chosen to purchase the next game quickly.  However, as it turned out, Lionhead did not have a similar game to launch.  Since players could neither expand on the existing game nor purchase a “next-gen” title, Lionhead’s decision ended up tarnishing their brand-name.

Where is Lionhead now? They’ve been bought out by Microsoft.

Applicability to Other Software

Developers of other categories of software will need to learn from the gaming software industry.  The power and the danger of software communities is increasingly important.  What do such communities offer?

  1. Extend Product Generation Life - This may be a good selling point during the initial software sale (1.0) but there is a risk that it will slow sales of an non-generation upgrade (a 1.5 version).
  2. Misuse - Opening up a line of software to the development community may result in security or functionality compromise (i.e. identity theft or other hacking.)
  3. Competitors - Opening up the code enough for developers to understand also means that your competitors will be able to understand it.  If they can understand it, they can emulate it.  Additionally, members of your own development community may decide to develop a mod or addon that becomes more desirable than your own core product.  Of course, this may turn into a new hiring pipeline as you can identify the most skilled and driven community members and hire them.

This is a scary prospect for many software developers.  But it is also a great opportunity for them.  These communities can serve as belwethers, letting you know how your next generation product must change in order to remain competitive.  Communities can quickly identify problems and, if given access, develop mods to fix flaws.  They also have the ability to adapt to niches.

Imagine, if you will, your software as an electric drill.  A drill has many uses each requiring a different drillbit or tip.  What we are talking about is concentrating your efforts on the core functionality of the product - the motor.  Your community can develop the myriad drillbits for you, if you give them the ability.  This avoids the costs of developing a hundred different drillbits each for a handful of users.

The development costs of customizing your software for different uses can be very high, particularly if the target markets are small and specialized.  By letting your community do your work for you, you are reducing costs and you are increasing the number of potential customers.  A market you wouldn’t have otherwise entered (small user base, high customization costs) can now be served by the combination of your drill and someone else’s drillbit.

The real future of software development is in communities.  Software developers first need to:

  1. Examine their markets and decide what level of community access is right for their product.
  2. They then need to follow this up by developing software products that are engineered to be community-accessible at their chosen level.
  3. Finally, they need to create, nurture, support, and then free their communities.

Bottom line: communities are not developed after products.  They are developed by products.

Nathan Bell recently argued that OpenID is too obtrusive for users and, while I agree, I don’t think this is the primary obstacle that OpenID faces. Before I go further, a disclaimer: I am not a techie and will therefore approach this as an MBA (boo, hiss).

Huh? What’s OpenID? OpenID is basically a single login (think username and password, though these are not the only ones) that works across a variety of sites. Unlike other previous attempts to standardize logins, OpenID does not rely on a single central server beholden to a single firm. Instead, it is a decentralized network allowing users to choose from several different identity providers. Further basic information can be found here, courtesy of Wikipedia (though I am sure many techies could nitpick the details on this description.)

What did Nathan Bell suggest? Bell suggests integrating the login as a browser utility. When visiting an OpenID-enabled site, the browser would ask you to confirm that you want to use your OpenID identity. Bell also notes that you would probably need to login to your identity provider once per session.

Sounds good… What’s wrong? While making OpenID easier to use is certainly a laudable goal, the real obstacle facing OpenID is the lack of perceived market need. Having gone through the stress and jumped through the hoops to get my own OpenID identity, I think it is a very useful tool. However, I believe the average internet user does not perceive a need for this tool

OpenID supporters tend to tout two major selling points for OpenID:

  1. Decentralized providers (you choose which one you trust most).
  2. Single login for many sites.

The average internet user, inasmuch as such a person exists, does not care about the ethical arguments regarding a centralized identity provider versus a decentralized one. They are busy people (as are we all) and simply want a solution to remove the irritation caused by trying to remember all the different usernames and passwords he or she uses.

Many of these users have found such a solution; Mac OSX’s Keychain utility and/or the built-in password memory on many browsers. From a security standpoint, these are less than ideal. Keychain-type solutions pool your collection of passwords on a single computer but are not easily shareable across your desktop, laptop, work computer, library terminal, etc. Browser password memory functions are dangerous because they allow anyone using your computer to log into your sites. Finally, both of these solutions store passwords locally (usually considered a security no-no.)

So what do you suggest? I believe that in order to grow the OpenID userbase, OpenID providers need to offer a seamless product with a coordinated message that appeals to potential users.  In other words, show them something that can be explained in a single phrase that immediately improves their lives.  For example:

  1. Add a keychain function that stores passwords for all their sites (not just OpenID enabled ones).  This plugin should store the passwords in a protected file with their OpenID provider.
  2. Allow users to access this keychain from any computer they use via their OpenID identity.
  3. “One login to rule them all” or, less ominously, “Login once. Use everywhere.”

This avoids the problems associated with network externalities.  It provides users an immediate gain rather than one that really only takes effect once OpenID is supported by the corporate internet.  The corporations aren’t going to replace their proprietary login systems with OpenID for a number of reasons.  So bypass them and let them keep their systems; OpenID shouldn’t play the same us-or-the-highway game as the corporate giants (Google, Yahoo, MSN, etc.).  Instead, make logins easier for the users because, at the end of the day, they’ll decide who wins.

And Bell’s idea? Use it as the first step. It makes sense to incorporate the login into a browser utility or plugin.  But it should go further; have that plugin collect (by asking, of course) username/password combinations for non-OpenID sites and store them with the identity provider.

I think the winning combination will be a two-way browser plugin that confirms the user identity once per session then collects and distributes the necessary identity credentials to each site, regardless of whether they are OpenID-enabled or not.

3
Jun

Recipient-defined Messaging

   Posted by: Adam   in Internet, Technology trends

Michael Richardson argues that people want more control over how others communicate with them. Given the plethora of incoming communication channels, people are currently bombarded with both high and low priority messages on each of their messaging systems. For example, someone who just wants to say “hi” to me may contact me via a standalone instant message system like AIM, through Facebook or Gmail IMs, by e-mail, by Twitter, by text message, etc.

What Michael is really getting at is that we currently have sender-defined messaging. In short, the sender pretty much has sole control of the delivery process. As you can see from this highly-technical diagram, this makes recipients sad.

Michael is right to see this system as inefficient and, more importantly, he provides a way to solve it. While I can’t speak to the scalability or architectural problems associated with recipient-defined messaging, the net effect seems very desirable. Any incoming message will be tagged with a priority level and a sender. Routing instructions defined by the recipient will be stored somewhere (ideas?) and, taking the tags into account, will forward the message to the appropriate system.

This new system allows the recipient to define how they will be contacted. Senders also see a benefit: they can be assured that the recipient is not unduly annoyed by their message (content aside).

One other possible innovation would be to have a single messaging address for each recipient. In other words, a sender would no longer need to maintain an extensive address list for each recipient with their twitter username, their IM username, their Facebook name, and each of their e-mail addresses. Essentially, we are talking about a single digital identity (which makes this a perfect fit for OpenID).

28
May

Barcodes for Life

   Posted by: Adam   in Internet, Technology trends, Uncategorized

As technology moves forward so quickly, there are certainly those among us who give up on staying current.  For the most part, technology dropouts (or perhaps Luddites) are able to function quite well in society.  History will record that Bill Clinton sent exactly one e-mail while in office as President.

However, in some parts of the world, it is getting harder and harder to function on a day-to-day basis without utilizing fairly modern technology.  In Helsinki, public transport schedules have been electronically tied to tracking programs so you can immediately find out how much longer you will need to wait for a bus or train.

The way this works is that the bus clocks in via RFID at each stop.  This data is sent to a central server which updates how far ahead of or behind schedule that bus is.  A rider at a bus stop points his or her cell phone camera at the bus stop’s barcode and takes a picture.  This picture is recognized as a unique identity number by the cell phone which then sends a text message of that number to the server.  The server responds to the text message by sending a reply to the rider’s phone with the estimated time of arrival for the next bus.

While paper schedules are still posted for the less technologically-enabled, the city is considering phasing paper schedules out in favor of this dynamic system.  This will force riders who do not use the technology to impose upon those who do or learn the technology themselves.

Moving a step further, GetWickd is a combination clothing seller and dating service.  Each customer is given a unique customer id and barcode.  Each time the customer buys clothing from the site, he or she inputs this number and the barcode is silkscreened onto the item.  The idea is that a passerby who sees a barcode on, for instance, a T-shirt will use their phone to read the barcode and will automatically load the wearer’s profile in their phone’s browser.  Similar technology exists to send those browsers to your blog or other web page.

The major adoption problem for this technology is the same one that faced the videophone; the user base network externality.  No piece of social technology is useful in a vacuum.  Therefore, people will only adopt this technology once they see that others have already adopted it.  What’s the point in having a barcode shirt if no-one can read it? And what’s the point of having the software to read barcodes on your phone unless enough people have barcode shirts?  The geek effect may provide an initial user base but will it be enough of a beachhead to establish a market desire for the technology?  Companies will need to establish a single common database (there are already competing standards) if they are to gain consumer acceptance.

The idea, however, raises an interesting possibility.  Since it costs money to maintain the database of site-code linkages, could we see a future where clothing expenditures are no longer a one-time event but a subscription-based model?

24
May

Ephemera and a Microsoft Update

   Posted by: Adam   in Internet, Marketing/Strategy, Tidbits

Ephemera: Organ donor programs often use the slogan, “The life you save may be your own.”  It turns out that these programs may have been more correct than they could have ever guessed.  Val Thomas had no brain activity for 17 hours and rigor mortis had set in.  Doctors kept her on a respirator to figure out who to donate her organs to when she suddenly woke up and started talking.  - MSNBC

A follow up to my earlier post: Microsoft has announced that it will shut down its program to scan and upload millions of books and journal articles.  The nonprofit organization that Microsoft was sponsoring to do the work is now looking for other sources of support.  This might be a sign that Microsoft intends to focus on a few core internet technologies, rather than competing with Google and others on seemingly every possible battlefield. - NYT

A few months ago Pudding Media was in the news for their ad-based phone service plan. Their basic idea is to use computers with voice-recognition software to listen in on their users phone calls in exchange for giving those users free VoIP phone service.

Once the voice-recognition software catches an important keyword, the software loads an appropriate ad to the computer’s screen. Pudding Media (founded by two brothers who previously worked for the Israeli military intelligence) plans to extend this model to mobile phones as well.

Obviously with such a technology, there are serious privacy and legal issues. Under U.S. law, phone calls may not be recorded without the knowledge of both parties. Pudding Media skirts this issue by only buffering the recording for mere seconds before erasing it. However, this may still be considered illegal recording (courts have not yet ruled on the issue.)

Aside from the moral/legal/ethical framework, the fact that such an enterprise exists shows the strength of the 2.0 model extending backwards into more traditional technologies. One of the tenets of the 2.0 model is the dynamic, two-way flow of information. Users of a service also create content for that service. This content is then turned around and offered to other users in a never-ending, turtles-all-the-way-down cycle.

The two people sharing a phone call with this new technology will constitute the “user” while the content is the ad chosen by the software for them to view. The keystone to this 2.0 story is that the company has found that people change their conversations based on the ads they are shown. Thus, the users help generate content which then influences the users as they create a second generation of content and so forth.

Semi-infinite recursion has the ability to strongly influence marketing tactics. Ads are traditionally seen as either a set-piece or a set-story. In the first group, ads simply stand alone. Most magazine ads are of this style. All the information the advertiser wants to communicate to the consumer is contained within this single piece. In a set-story, an advertiser chooses a progression of ads to lead the consumer to a certain conclusion. An example are the dying breed of highway ads where each successive billboard ads another piece of information to the story.

The set-story is less common currently because advertisers have no easy way to make sure that you start at the beginning and proceed forward in a linear manner. Obviously, with the viewer-tracking made possible in current internet models, there may be a renaissance of such advertising.

Pudding Media’s technology may lead to a third marketing method. Depending on how much influence the ads have on the conversation, we could see model where the advertiser develops several distinct storylines that lead to their object. (A story-web may be a more appropriate word than storylines.)

Set-piece ads are like a static picture. Set-story ads are like a novel. What Pudding Media may develop into is the equivalent of the choose-your-own-adventure novel.

“In an attempt to undercut Goodle’s standing as the most popular guide to the Web, Microsoft announced yesterday that it was offering cash incentives for people who use the company’s often-overlooked search engine.” - Washington Post

Microsoft is really starting to embarrass itself as it attempts to enter non-core markets. Who remembers Microsoft’s Cordless Phone? Who uses a .NET passport? How many of you own a Zune? Microsoft seems to have an awful lot of also-ran products. Why does this matter? Because of brands.

Brand power is recognized as a major influence in the average customer purchase decision. A well-constructed brand conveys security, quality, value, and/or other qualities that a single product simply doesn’t have. A brand alone, even without the products, can be worth hundreds of millions of dollars.

Microsoft understands this. Despite the hate-Microsoft bandwagon that seems to trundle round every few months, the Microsoft brand name has real power. That’s why Microsoft thinks it has the ability to march into any profitable computing-related market and claim a piece of the pie. What they don’t seem to realize is exactly how much they are risking.

Each new product Microsoft launches, whether it be a search engine, a gaming console, a phone, an authentication protocol, or MP3 player, has a launch campaign designed to use the Microsoft brand. This should help the new product gain traction with consumers thus increasing the product’s market share growth.

However, brand power is a dynamic beast. Each time a product fails to gain momentum (e.g. the phone) or encounters significant resistance (e.g. the Zune), Microsoft looks like an also-ran. The aggregate effect of browser wars, search engine wars, MP3 player wars, console wars, etc. is to slowly tarnish the Microsoft brand image. Obviously, each of these conflicts is driven by Microsoft’s brand. Equally, each of these conflicts contributes to Microsoft’s brand image.

In the eyes of consumers, Microsoft is becoming a reminder of a greedy latecomer who wants to barge into a party and then claim they threw it themselves.

Furthermore, these activities create a lot of enemies during a time when the internet is focused heavily on alliances, cooperation, and shared technologies. Other companies with new and innovative ideas don’t look to Microsoft as a collaborator or partner. Instead, they try to “Microsoft-proof” their concepts to head Goliath off at the pass.

Rather than attempt to find a battle on every front, Microsoft needs to pick a core business platform and one or two related markets. By focusing on these, Microsoft can win enough to burnish the brand and build a bridge to other markets. The hydra’s heads need to work together and go after a single target.

(Of course, there is one market where Microsoft has really succeeded in going from an also-ran to a leader. Console manufacturers have really had to cede ground to the Xbox series. Perhaps Microsoft can accelerate some of the learning in that division to its next big target?)

(People might point to Google as a similarly multi-focused entity. However, Google enters markets much earlier, either through acquisition or direct competition, and tends not to fight multiple major companies at the same time. This helps Google avoid a bullying brand message for the average consumer. It also confines itself to web technologies for the most part.)